Working in partnership with our communities
Working in partnership with our communities

Changes to the Furlough Scheme

This guidance page was updated on 12 June to include details on how the scheme will change from 1 July. 2020

From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim Coronavirus Job Retention Scheme grant for the hours not worked.

From 1 August 2020, the level of grant will be reduced each month.To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.

The timetable for changes to the scheme is set out below. Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours:

  • There are no changes to grant levels in June.
  • For June and July, the government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.
  • For August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
  • For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
  • For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.

The table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.

Wage caps are proportional to the hours not worked.

Timeline for the Coronavirus Job Retention Scheme to reflect the forthcoming changes

Please Note: All information correct at time of writing on 18 June 2020 – We would encourage you to check the government website for updates as they happen.

Financials unchanged – employers can bring furloughed employees back to work for any amount of time and still claim the furlough grant for the difference between the hours they would normally have worked, and the hours actually worked.

The government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay Employer’s National Insurance Contributions and pension contributions for the hours the employee is on furlough.

As introduced in July employers can bring furloughed employees back to work for any amount of time and still claim the furlough grant for the difference between the hours they would normally have worked, and the hours actually worked.

The government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay Employer’s National Insurance Contributions and pension contributions and top up the employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for the time they’re furloughed.

As introduced in July employers can bring furloughed employees back to work for any amount of time and still claim the furlough grant for the difference between the hours they would normally have worked, and the hours actually worked.

The government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay Employer’s National Insurance Contributions and pension contributions and top up the employee’s wages to ensure they receive 80% of their wages up to a cap of £2,500, for the time they’re furloughed.

As introduced in July employers can bring furloughed employees back to work for any amount of time and still claim the furlough grant for the difference between the hours they would normally have worked, and the hours actually worked.

 

The scheme will close on 31 October 2020